Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
The best cash Isas on the market
- Instant access cash Isa: Manchester Building Society offers the best instant-access cash Isa deal, paying 3.06% on initial balances of at least £1,000. This account includes a bonus of 1.05% payable for a year. The Post Office’s Premier Cash Isa pays out 3.01% (including a 1.26% bonus for 18 months). Marks & Spencer Money’s Advantage Isa also stands out with a headline rate of 3.00% without a bonus period – so is worth considering if you want to avoid worry about the rate dropping off. You can also start with a minimum deposit of £25.
- Notice cash Isa: Notice cash Isa accounts used to pay a higher rate for locking up your money, but don’t tend to anymore. Coventry BS’s 60 Day Notice Isa does pay an attractive rate of 3.25%, but you’ll need to give 60 days notice to get at your cash. This account does not allow transfers in from other providers.
- One-year fixed-rate cash Isa: Julian Hodge Bank offers the top one-year fixed-rate cash Isa account at 3.35% and allows transfers in from other providers. The Isa from Aldermore also pays a competitive rate of 3.30%.
- Two-year fixed-rate cash Isa: The Post Office and Santander lead with Isas paying 3.60%. The account from Santander has a minimum deposit of just £1. The two-year fixed-rate cash Isa deal from the Bank of Cyprus at 3.40% is also an attractive product if you’re happy to tie your money up for two years.
- Three-year fixed-rate cash Isa: The Post Office and Saga both offer a decent rate of 3.70%. Saga allows for a minimum deposit of just £1 but is available to people aged over 50 only.
- Four-year fixed-rate cash Isa: The Halifax Fixed Rate Isa Saver pays 3.80% and is the only four-year fixed-rate cash Isa deal that qualifies for inclusion in our tables at the moment.
- Five-year fixed-rate cash Isa: BM Savings are top with its five-year fixed rate Isa paying 4.05% and requiring a minimum deposit of £500. Halifax and Julian Hodge Bank Fixed Rate Isa accounts currently pay 4.00%. All allow transfers in.
The best savings accounts
- Instant access savings: Krbs’s Direct Savings Account tops the best instant-access savings table at 3.20%. The rate includes a 2.06% bonus payable to 30 November 2013. Derbyshire BS and GE Capital Direct are next with accounts paying 3.06%.
- Notice savings: Traditionally, notice savings accounts paid higher rates than instant access accounts in return for tying your money up but this is no longer always the case. Krbs’s online and postal/telephone accounts are best at 3.35% and 3.25% respectively.
- One-year fixed rate savings: United Bank UK offers the top-paying one-year fixed-rate savings deal at 3.45%. Close Brothers Savings and Krbs also offer decent rates at 3.40%. It’s worth noting that the minimum initial investment for the Close Brothers Savings account is £10,000.
- Two-year fixed rate savings: Saga offers the top-paying two-year fixed-rate savings account at 3.80%. Saga accounts are available to people aged over 50s only. The Post Office follows closely behind with a deal paying 3.61%.
- Three-year fixed rate savings: The AA offers the best three-year fixed-rate savings account with a rate of 4.00%. However, Halifax is hot on its heels with a 3.85% deal from an initial balance of £500.
- Four-year fixed rate savings: Just two deals are in our four-year fixed-rate savings account table this week. Halifax’s branch/telephone and online accounts both pay 3.90% from balances of £500.
- Five-year fixed rate savings: Vanquis Bank’s online only Five-Year High Yield account currently tops our five-year fixed-rate savings table, paying 4.06% on initial balances of £1,000. Clydesdale Bank and Yorkshire Bank’s Term Deposit accounts (available in-branch and online) both pay 4.05% on balances of £2,000.
And finally… boost your savings
To find out if your savings account is paying a competitive interest rate, check out the Which? Savings Rate Booster tool and switch your account for a better deal if necessary.
- Non-internet savings accounts – for the best rate non-internet accounts
- Are my savings safe? – the Which? guide to savings protection
- Euro crisis guide – check your savings account is protected